BILL NUMBER: SB 105	CHAPTERED  09/07/99

	CHAPTER   341
	FILED WITH SECRETARY OF STATE   SEPTEMBER 7, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 7, 1999
	PASSED THE SENATE   AUGUST 25, 1999
	PASSED THE ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   JUNE 8, 1999
	AMENDED IN SENATE   MAY 10, 1999
	AMENDED IN SENATE   APRIL 20, 1999

INTRODUCED BY   Senator Burton
   (Principal coauthors:  Assembly Members Shelley and Villaraigosa)
   (Coauthors:  Senators Dunn and Hayden)
   (Coauthor:  Assembly Member Migden)

                        DECEMBER 10, 1998

   An act to add Section 7513.5 to the Government Code, relating to
state retirement systems.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 105, Burton.  State retirement systems:  Northern Ireland.
   The California Constitution provides that the Legislature may by
statute prohibit retirement board investments where it is in the
public interest to do so and providing that the prohibition satisfies
specified fiduciary standards.
   This bill would require the Teachers' Retirement Board and the
Board of Administration of the Public Employees' Retirement System,
respectively, to annually investigate and report to the Legislature
on the extent to which United States and international corporations
operating in Northern Ireland, in which their system assets are
invested, adhere, in compliance with the law applicable in Northern
Ireland, to the principles of nondiscrimination in employment and
freedom of workplace opportunity.
   This bill would require those retirement boards to compile a list
of domestic and international corporations that do business in
Northern Ireland, and in whose stocks or obligations it has invested,
and determine whether each corporation on the list has, during the
preceding year, taken substantial action, in compliance with the law
applicable in Northern Ireland, designed to lead toward the
achievement of specified goals.
   This bill would also require those retirement boards, whenever
feasible and consistent with their fiduciary responsibility, to
support shareholder resolutions designed to encourage domestic and
international corporations in which it has invested to pursue, in
compliance with the law applicable in Northern Ireland, a policy of
affirmative action in Northern Ireland.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature of the State of California is
concerned about allegations of religious and ethnic discrimination
against minority workers in many firms conducting business in
Northern Ireland.
   (b) The Legislature further finds that the State Teachers'
Retirement System and the Public Employees' Retirement System have
investments in domestic and international firms presently conducting
business in Northern Ireland.
   (c) The Teachers' Retirement Board and the Board of Administration
of the Public Employees' Retirement System are encouraged to make
future retirement system investments in United States and
international firms conducting business in Northern Ireland pursuant
to the fiduciary standards prescribed by Section 17 of Article XVI of
the California Constitution and related statutes and the MacBride
Principles of fair employment.
  SEC. 2.  Section 7513.5 is added to the Government Code, to read:
   7513.5.  (a) On or before the first day of March of each year, the
Teachers' Retirement Board and the Board of Administration of the
Public Employees' Retirement System, respectively, shall investigate
and report to the Legislature on the extent to which United States
and international corporations operating in Northern Ireland, in
which the assets of the State Teachers' Retirement System and the
Public Employees' Retirement System are invested, adhere, in
compliance with the law applicable in Northern Ireland, to the
principles of nondiscrimination in employment and freedom of
workplace opportunity.
   (b) The Teachers' Retirement Board and the Board of Administration
of the Public Employees' Retirement System, respectively, shall
compile a list of domestic and international corporations that,
directly or through a subsidiary, do business in Northern Ireland,
and in whose stocks or obligations it has invested, and determine
whether each corporation on the list has, during the preceding year,
taken substantial action, in compliance with the law applicable in
Northern Ireland, designed to lead toward the achievement of the
following goals:
   (1) Increased representation of individuals from underrepresented
religious groups in the work force, including managerial,
supervisory, administrative, clerical, and technical jobs.
   (2) Adequate security for the protection of minority employees
both at the workplace and while traveling to and from work.
   (3) Banning of provocative religious or political emblems from the
workplace.
   (4) Public advertisement of all job openings and the use of
special recruitment efforts to attract applicants from
underrepresented religious groups.
   (5) Establishment of layoff, recall, and termination procedures
which do not, in practice, favor particular religious groupings.
   (6) Abolition of job reservations, apprenticeship restrictions,
and differential employment criteria, which discriminate on the basis
of religion or ethnic origin.
   (7) The development of training programs that will prepare
substantial numbers of current minority employees for skilled jobs,
including the expansion of existing programs and the creation of new
programs to train, upgrade, and improve the skills of minority
employees.
   (8) The establishment of procedures to assess, identify, and
actively recruit minority employees with potential for further
advancement.
   (9) The appointment of senior management staff members to oversee
affirmative action efforts and the setting up of timetables to carry
out affirmative action principles.
   (c) Whenever feasible and consistent with their fiduciary
responsibility, the Teachers' Retirement Board and the Board of
Administration of the Public Employees' Retirement System,
respectively, shall support shareholder resolutions designed to
encourage domestic and international corporations in which the
Teachers' Retirement Board and the Board of Administration of the
Public Employees' Retirement System, respectively, has invested to
pursue, in compliance with the law applicable in Northern Ireland, a
policy of affirmative action in Northern Ireland in accordance with
the goals listed in subdivision (b).
